Simply writing a will is often the first step that people take when they decide that it is time to create an estate plan. They use their will to divide their assets among their beneficiaries, giving them a bit more control over how things are passed on to the next generation.
A will is certainly a useful tool and can form the basis of an estate plan. But in many senses, it is not necessarily enough. There are other types of documentation you may want to consider, giving you a more comprehensive overall estate plan that does far more than just distribute your assets.
Advance directives
For example, you can use certain advance directives to make decisions about future medical care.
You may want to select a proxy who can make decisions on your behalf, should you become incapacitated. You may want to leave instructions for your medical team or use documents like a do-not-resuscitate order. You can also make some of your medical decisions in advance so that, if you are not able to make them in the moment, your estate plan provides guidance.
A special needs trust
If you are leaving assets to a beneficiary who receives government benefits due to certain special needs, it is often wise to put those assets into a trust.
If you just list those assets in your will, it can mean that the beneficiary no longer passes the means test. They have too many assets to qualify for benefits. But if you instead put them into a special needs trust, which holds them on the beneficiary’s behalf, they can retain their eligibility for benefits.
Setting up an estate plan
These are just two examples of other types of documentation that may help, beyond a simple will. You do have many options, and it can help to work with an experienced estate planning attorney to learn exactly how to draft your plan.
